DEPOSIT SCHEME FOR RETIRING.pdf

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10/11/13 incometaxindia.gov.in

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DEPOSIT SCHEME FOR RETIRING

GOVERNMENT EMPLOYEES, 1989

GSR 598(E), DATED 7-6-1989

[Discontinued with effect from 9-7-2004 vide Notification F. No. 15-01/2004-NS II, dated 9-7-2004]

The Government of India hereby notifies the following Deposit Scheme with eff ect from 1st July, 1989, until further orders:

Short title.

1. This Scheme may be called the Deposit Scheme for Retiring Government Employees, 1989.

Definitions.

2. In this Scheme, unless the context otherwise requires :

(a) Accoun t means an account opened under this Scheme.

(b) Accoun ts Office means any branch of State Bank of India or its subs idiaries or any other nationalised banks, as may be authorised to accept deposits

under the Scheme.

(c) Depositor means a retired Central or State Government employee by whom or on whose behalf money is deposited in an account and depos it means

money so deposited.

(d) Retirement benefits mean any payment due to the depos itor on account of his retirement whether on superannuation or otherwise and includes the

following payments :

(i) Balance at the c redit of employee in any of the Government Provident Funds ,

(ii) Retirement/Superannuation gratuity,

(iii) Commuted value of pens ion,

(iv) Cash equivalent of leave, and

(v) Savings element of Government insurance scheme payable to the employee on retirement.

Opening of account.

3. (a) Any depos itor may open an accoun t with any accounts office within three months from the date of receiving the retirement benefits or up to 31st December, 1989,

whichever is later (now 31st March, 1990 vide PIB Press Release, dated 13-3-1990), for depositing the amounts not exceeding the total retirement benefits, by applying in

Form 1, or as near thereto as poss ible, together with :

(i) a locally executed cheque, pay order or demand draft, for the amount of deposit, and

(ii) a certificate from the employer indicating retirement benefits :

Provided that a depositor who has received the retirement benefits before the notification of this Scheme may, open an account within six months from the date ofcommencement of the Scheme:
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Provided further that where the amount of depos it does no t exceed Rs. 5 lakhs, an affidavit on stamped paper s igned by the depos itor indicating the amount of retirement

benefits received by him shall be accepted in lieu of a certificate from the employer.

(b) On receipt of an application under sub-paragraph (a) above, the accounts office shall open an account in the name of depositor and issue him a provisional receipt.

(c) After realisation of the cheque , pay o rder or demand draft, as the cas e may be, a pas s book in Form 2 shall be iss ued in exchange for the provisional receipt indicating

the name of the depos itor, his address , the amount of deposit(s) made, and account number, duly initialled by an authorised official of the accounts office.

(d) The date of realisation of the cheque, pay o rder or demand draft, shall be the date o f deposit and the deposit shall be deemed to be made on that da te only.

(e) A depositor may open only one account under this Scheme, provided that where the retirement benefits have been received on different dates , more than one depos it

can be made in this account. Such depos its s hall be made within three months from the date o f receiving that retirement benefit from the Government.Deposits and withdrawals .

4. (a) The account s hall be opened with a depos it of a minimum of one thousand rupees and all deposits will be in the multiples of one thousand rupees.

(b) All withdrawals shall be in multiples of one thousand rupees .

(c) A depositor may, at his op tion, withdraw by applying in Form 3 or as near hereto as poss ible, the entire balance or part thereof after the expiry of three years from the

date of deposit. Where a depos itor elects to make part withdrawal, the balance amount will be held as a depos it in the account.

(d) The depositor may also make premature withdrawal of the principal amount subject to the conditions s pecified in paragraph 7.

(e) There shall not be more than one withdrawal in respect of a depos it in a calendar year.

Interes t on deposits .

5. (a) All depos its made in accordance with this Scheme shall carry interest at the rate of 9% per annum from the date of the respec tive depos its. The interest will be paidfrom the da te of depos it to 30th June/31st December, as the cas e may be, and thereafter, interest will be paid half-yearly on the 30th June and 31st December. The interest

in fraction of a rupee will be rounded off to the next higher rupee:

Provided that t he deposits made in accordance with th is scheme on or after 15th March, 1993, shall carry interest at the rate o f 10 per cent per annum :

[Provided further that the deposits made in accordance with th is Scheme on or after 1st January, 1999 shall carry interest at the rate of 9 per cent per annum :]

[Provided also that the deposits made in accordance with th is Scheme on or after the 1st day of March, 2001 shall carry interest at the rate o f 8.5 per cent per annum :]

[Provided also that the deposits made in accordance with th is Scheme on or after the 1st day of March, 2002 shall carry interest at the rate o f 8.0 per cent per annum: ]

3a[Provided alsothat the deposits made in accordance with this Scheme on or after the 1stday of March, 2003 shall carry interest at the rate of seven per cent per

annum.]

(b) Where on expiry of three years, the accoun t is cont inued the balance amount in the account will earn interest at the same rate till the account is closed :

Provided that where the account is continued on expiry of three years whether prior to 15th March, 1993, or at any time thereafter, the balance amount in such account

shall earn interest at the rate of 10 per cent per annum on and from 15th March, 1993, or the date of expiry of three years, whichever is later :

[Provided further that where the account is continued on expiry of three years whether prior to the 1st January, 1999, or at any time thereafter, the balance amount in

such account shall earn interest at the rate of 9 per cent on and from the 1st January, 1999 or the da te of expiry of three years, whichever is later :]

[Provided also that where the accoun t is continued on expiry of three years, whether prior to the 1st day of March, 2001 or at any time thereafter, the balance amount in

such account shall earn interest at the rate of 8.5 per cent per annum on and from the 1st day of March, 2001 or the date of expiry of three years, whichever is later :]

[Provided also that where the accoun t is continued on expiry of three years, whether prior to the 1st day of March, 2002 or at any time thereafter, the balance amount in

such account shall earn interest at the rate of 8.0 per cent per annum on and from the 1st day of March, 2002 or the date of expiry of three years, whichever is later:]

3a[Provided also that where the account is continued on expiry of three years, whether prior to the first day of March, 2003 or at any time thereafter, the balance

amount in such account shall earn interest at the rate of seven per cent per annum on and from the first day of March,2003 or the date of expiry of three years,

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whichever is later.]

(c) If so authorised, interest payable every six months may be deposited by the accounts office in a separate savings account opened by the depositor at that accounts

office.

(d) Interest due on the deposits but not drawn on due date will continue to earn interest at 9% as applicable to the principal amount, so long as the interest remains in

deposit :

Provided that where the deposits in an account earn interest at the rate of 10 per cent per annum in terms of the proviso to sub-paragraph (a) or sub-paragraph (b), the

interest on the undrawn interest shall be at the rate o f 10 per cent per annum on and from 15th March, 1993, or the date of expiry of three years, whichever is later :

[Provided further that where the deposits in an account earn interest at the rate of 9 per cent per annum in terms of the second proviso to sub-paragraph ( a) or sub-paragraph (b), the interest on the undrawn interest shall be at the rate of 9 per cent per annum on and from the 1st January, 1999 or the date of expiry of three years,

whichever is later :]

[Provided also that where the depos its in an account earn interest at the rate of 8.5 per cent per annum in terms of the th ird proviso to sub-paragraph (a) or th ird proviso

to sub-paragraph (b), the interest on the undrawn interest sha ll be at the rate of 8.5 per cent per annum on and from the 1st day of March, 2001 or the date of expiry of

three years, whichever is later :]

[Provided also that where the deposits in an account earn interest at the rate of 8.0 per cent per annum in terms of the fourth proviso to sub-paragraph (a) or fourth

proviso to s ub-parag raph (b), the interes t on the undrawn interest shall be at the rate o f 8.0 per cent per annum on and from the 1st day o f March, 2002:

3a[Provided also that where the deposits in an account earn interest at the rate of seven per cent per annum in terms of the fifth proviso to sub-paragraph (a) or fifth

proviso to sub -paragraph (b), the interest on the undrawn in terest shall be at the rate o f seven per cen t per annum on and from the 1stday of March, 2003.]

Premature withdrawal.

6. (a) No withdrawal can be made by the depos itor during the first year from the date of the depos it.

(b) Where a depositor makes a withdrawal of any amount after the expiry of one year but before the expiry of three years from the date of deposit, the interest on the

amount withdrawn will be payable at t he rate of 4% from the date(s) of depos it up to the date of withdrawal, interest at 9% if already paid, being adjusted at the time of

withdrawal.

Joint accounts and nomination.4

7. (a) The account may be opened by the depos itor either in his name or jointly with his s pouse.

(b) Where the account is held in a s ingle name :

(i) The depositor may, at the time of opening the account or any time thereafter but before closure of the account, nominate in Form 4, a person or persons ,

who in the event of his death, shall receive the payment due on t he account .

(ii) A nomination made by a depos itor may be cancelled or varied by a fresh nomination in Form 5 by giving notice in writing to the accounts office in which his

account stands.

(iii ) Every nomination and every cancellation or variation thereof shall be registered in the accounts office and shall be valid from the date of such registration,

the particulars of which shall be entered in the pass book.

Closure of account.

8. (a) The account may be closed by the depos itor on or after the expiry of three years from the date of initial deposit or last depos it where more than one depos it is made

in the account.

(b) If the depositor dies within the period of three years, or thereafter, the account shall be closed as soon as death is reported to the bank and the amount paid to the

nominee. Where, however, the deposit account is held jointly with the spouse or where the sole nominee is the spouse of the depositor, the spouse may, at his/heroption, request for continuance of the account and the account then shall be continued in the name of such spouse on the same terms and conditions as applicable to the

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account.

Pass book.

9. The pass book shall be presented to the accounts office at the time of collecting interest and also at the time of withdrawal and closure.

Transfer from one accounts office to another.

10. A depos itor may apply for transfer of his account from one accounts office to another accounts office due to change of his residence.

Issue of duplicate pass book.

11. In the event o f loss or destruction of a pas s book issued by an accounts office, the office may, on an application made to it in this behalf and on payment of rupee

one by t he depos itor, issue a duplicate thereof to him.

Power to relax.

12. Where the Central Government is satisfied that the operation of any of the provisions of this Scheme causes undue hardship to a subscriber, it may, by order, for

reasons to be recorded in writing, relax the requirements of that provision.

Documents

DEPOSIT SCHEME FOR RETIRING.pdf